(a) Investment standards.--
(1) Subject to subsection (b)(1) and any conditions and limitations in this chapter, in counties of the second class A, the county treasurer shall have the power to invest and reinvest the money of the general fund and special funds that have accumulated beyond the ordinary needs of the various funds, and which are not authorized by law to be invested by any board, commission or county officer, consistent with sound business practice, subject, however, to the exercise of that degree of judgment, skill and care under the circumstances then prevailing which persons of prudence, discretion and intelligence, who are familiar with the matters, exercise in the management of their own affairs not in regard to speculation, but in regard to the permanent disposition of the funds, considering the probable income to be derived therefrom as well as the probable safety of their capital.
(2) In counties of the third, fourth, fifth, sixth, seventh or eighth class, the county commissioners or any individual other than a county commissioner who serves in an elective county office, shall invest money not otherwise required by law to be invested that the individual's office is required to collect, administer or disburse, consistent with sound business practice, subject, however, to the exercise of that degree of judgment, skill and care under the circumstances then prevailing which persons of prudence, discretion and intelligence, who are familiar with such matters, exercise in the management of their own affairs not in regard to speculation, but in regard to the permanent disposition of the funds, considering the probable income to be derived therefrom as well as the probable safety of their capital.
(b) Investment board and investment program.--
(1) In counties of the second class A, a board of investment is created. The board shall be composed of the treasurer, who shall chair the board, the chairperson of the county commissioners and the controller. The board shall provide for an investment program, including temporary investments, subject to restrictions contained in this part and in any other applicable statute and any rules and regulations adopted by the board. County boards, commissions or other county officers authorized to make investments under subsection (a)(1) shall make investments in conformity with the board's investment program.
(2) In counties of the third, fourth, fifth, sixth, seventh or eighth class, the county commissioners shall provide for an investment program, including temporary investments, subject to restrictions contained in this act and in any other applicable statute and any rules and regulations adopted by the county commissioners. Other elective officials authorized to make investments under subsection (a)(2) shall make investments in conformity with the investment program required under this paragraph.
(c) Authorized investments or financial products.--Authorized types of investments or financial products for money, in addition to those authorized under the act of July 25, 1973 (P.L.217, No.53), entitled "An act authorizing cities of the first class and second class to invest all funds received and deposited with the city treasurer in certain commercial paper under certain terms and conditions; and providing for investment of public corporation or municipal authority funds," shall be:
(1) Obligations of:
(i) the United States or any of its agencies or instrumentalities backed by the full faith and credit of the United States, including United States Treasury bills;
(ii) the Commonwealth or any of its agencies or instrumentalities backed by the full faith and credit of the Commonwealth; or
(iii) a political subdivision of the Commonwealth or any of its agencies or instrumentalities backed by the full faith and credit of the political subdivision.
(2) Deposits in savings accounts or time deposits, other than certificates of deposit, or share accounts of institutions insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund to the extent that the accounts are insured, and, for any amounts above the insured maximum, if approved collateral as provided by law is pledged by the depository. Deposits under this paragraph shall be differentiated from savings or demand deposits as authorized by the act of July 25, 1973 (P.L.217, No.53).
(3) Shares of an investment company registered under the Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. § 80a-1 et seq.), whose shares are registered under the Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77a et seq.), if the only investments of the company are in the authorized investments for county money in paragraphs (1) and (2) and:
(i) The investment company is managed in accordance with 17 CFR 270.2a-7 (relating to money market funds).
(ii) The investment company is rated in the highest category by a nationally recognized rating agency.
(4) Certificates of deposit purchased from institutions insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund to the extent that the accounts are insured and, for any amounts above the insured maximum, if approved collateral as provided by law is pledged by the depository. In addition to the collateralization requirements, the following limitations shall apply:
(i) Certificates of deposit purchased from commercial banks shall be limited to an amount equal to 20% of a bank's total capital and surplus.
(ii) Certificates of deposit purchased from savings and loan associations or savings banks shall be limited to an amount equal to 20% of an institution's assets minus liabilities.
(5) An investment authorized under 20 Pa.C.S. Ch. 73 (relating to municipalities investments), which shall be an authorized investment for a pension or retirement fund.
(d) Limitation on certain officials.--Officials, as authorized in subsection (a)(1) or (2), may not have invested in negotiable certificates of deposit, bankers' acceptances or commercial paper, respectively, as authorized by the act of July 25, 1973 (P.L.217, No.53), more than an aggregate of the total sum as the investment policy of the board of investment or the county commissioners has prescribed.
(e) Authority of officials making investments of county money.--Officials making investments of county money, as authorized in subsection (a)(1) or (2), may:
(1) Permit assets pledged as collateral under subsection (c)(2) to be pooled in accordance with the act of August 6, 1971 (P.L.281, No.72), entitled "An act standardizing the procedures for pledges of assets to secure deposits of public funds with banking institutions pursuant to other laws; establishing a standard rule for the types, amounts and valuations of assets eligible to be used as collateral for deposits of public funds; permitting assets to be pledged against deposits on a pooled basis; and authorizing the appointment of custodians to act as pledgees of assets," relating to pledges of assets to secure deposits of public money.
(2) Combine money from more than one fund under county control for the purchase of a single investment, if each of the funds combined are accounted for separately in all respects and that the earnings from the investment are separately and individually computed and recorded and credited to the accounts from which the investment was purchased.
(3) Join with one or more other political subdivisions and municipal authorities in accordance with 53 Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental cooperation) in the purchase of a single investment, if the requirements of paragraph (2) on separate accounting of individual funds and separate computation, recording and crediting of the earnings from the funds are adhered to.
(4) Join with the Commonwealth, political subdivision or redevelopment authority in the purchase of real estate for the purposes of community and economic development.
(5) Grant money to the Commonwealth, political subdivision or redevelopment authority for the purposes of supporting community and economic development projects.
(f) Income earned.--All income earned on an investment shall inure to the benefit of the county and shall be placed in the county general fund except as otherwise directed by the county commissioners or restricted by law.